What happened
Bloomin' Brands (BLMN 1.85%) stock has dropped today, down by 8% as of 1:00 p.m. EDT, after the company reported second-quarter earnings.
So what
Revenue in the second quarter came in at $1.03 billion, which translated into adjusted earnings per share of $0.28. Both top- and bottom-line results were right on target with consensus estimates.
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Comparable-restaurant sales at Outback Steakhouse were up 0.3%, while combined U.S. comps were down 0.3%. Outback Steakhouse performed well in Brazil, with comps rising 13%. The company opened five new restaurants during the quarter.
Now what
In a statement, CEO Liz Smith said, "We maintained positive comp sales at Outback with strengthening traffic trends as our investments are gaining traction. In addition, comp sales were up 13% at Outback Brazil as this business continues to perform at a very high level." Other brands did not fare as well. Bonefish Grill saw comps fall 2.6% and Fleming's Prime Steakhouse & Wine Bar comps were down 1.3%. Carrabas comps were up 0.4%.
Bloomin' Brands reaffirmed most of its fiscal 2017 outlook, which calls for $1.40 to $1.47 in adjusted earnings per share this year, but slightly adjusted its expected effective tax rate and new restaurant openings. Adjusted effective income tax rate for the year is now expected to be 24% to 25%, down modestly from the prior outlook of 25% to 26%. The company now expects to open 30 new restaurants, down from a prior range of 40 to 50, which Bloomin' Brands attributes to a reduction in international franchise expectations.
